How confident are you about your retirement savings? That might
seem like a difficult question to answer.
How confident are you about your retirement savings? That might seem like a difficult question to answer. Maybe a better question is – do you own your home? If your answer is no, you’re not alone. Retirement-age homeowners are more likely than ever to carry mortgage debt. According to a USA Today analysis of census data, more than 28 percent of homeowners age 65 or older owe on their homes.
What makes these numbers so surprising is that those, age 65 and older, are the ones most likely to have homes paid off. The rising trend reflects the difficulty of the longest-held financial goal – retirement.
Today’s retirees have delayed saving and there’s a number of reasons why. For one, their generation sent more kids to college than ever before and education costs can have an incredible strain on income. Another factor is attitude and how much retirees have changed. As the Great Depression fades, so do the anti-debt views of those who survived it. As a nation, we’re all less cautious of how much debt we build.
Lack of planning is what many retirees blame when it comes close to retirement. I can’t tell you how many people have said, “I wish I would have thought of retirement sooner.” The following are three basic steps to determining your level of retirement confidence:
Step 1: Review Your Financial Situation – A top-to-bottom review of your financial situation is a good place to start. Tracking all of your income, expenditures and retirement plan performance can help you determine whether you’re managing your retirement assets wisely.
Step 2: Make Necessary Adjustments – How long has it been since you’ve moved your investments around? The economic climate constantly changes; therefore, you sometimes have to change too. If you have most of your money locked in one investment, stocks for example, consider moving a portion to a more conservative portfolio.
Step 3: Explore Alternatives – The financial landscape is like a maze, there are options everywhere you turn. Don’t jump on the first one and don’t wait until it’s too late. The best advice is to get in there and give yourself a variety based on your personal situation. If you have a financial professional you or someone close to you trusts, it’s worth a conversation. Remember, a consultation is not a contract and don’t be afraid of change – it’s a good thing.
Eric Heckman is president of Heckman Financial & Ins. Contact him at www.WealthCreator.com or 297-9800.
